Biden, Yunus Talks: Govt looks to strengthen trade, ties

The bilateral meeting between Chief Adviser Prof Muhammad Yunus and  US President Joe Biden due today provides a rare opportunity for Dhaka  to push for improving trade and boost the economy, say analysts.
Biden  agreeing to meet with Yunus on the sidelines of the UN General Assembly  in New York signals Washington’s eagerness to support Bangladesh’s  interim government.
Diplomatic sources said the US president  usually goes to the UNGA for a short time and holding any bilateral  meetings with the head of the Bangladesh government is rare.
“This  signals that Washington wants to seriously engage with Dhaka because  Bangladesh is important for the US and Prof Yunus has a global  standing,” said Obaidul Haque, associate professor at Dhaka University’s  International Relations Department.
He said the US has been  trying to deepen the engagement with Bangladesh over the last few years,  but it was not going very well. Now that the interim government has  taken up initiatives for widespread reforms, and promised democratic  elections and good governance, Washington is showing increasing  interest.
The US suspended the Generalized System of Preferences  (GSP) facility for Bangladesh in the aftermath of Rana Plaza collapse in  2013, citing poor labour conditions. In 2021, it imposed sanctions  against Rab and seven of its top officials over human rights violations  and in May last year announced visa restrictions for those undermining  democratic elections.
Former prime minister Sheikh Hasina made  critical remarks of the US that was vocal about human rights, media  freedom, and free and fair election ahead of the national polls on  January 7 this year.
With the changed political landscape, the Dhaka-Washington relations appeared to take a new trajectory.
A  six-member US delegation, led by Treasury Department’s Assistant  Secretary Brent Nieman, visited Dhaka in mid-September, the first  foreign delegation’s tour after the interim government was formed.
The  delegation said Washington would be happy to support Prof Yunus’ reform  agenda and expressed eagerness to offer technical and financial  assistance for reforms.
According to foreign policy analysts,  Bangladesh’s main challenge is now the economy, and the reforms agenda  being taken up will be successful if the economic challenge can be  addressed. Things may be different otherwise.
With better  political understanding, Bangladesh may secure greater economic benefits  and have access to new avenues for much-needed external funds, at  favourable conditions, said Mohammad Sufiur Rahman, a senior research  fellow at the South Asian Institute of Policy and Governance at North  South University.
Even with about 18 percent duty, Bangladesh’s  export to the US is close to $8 billion and it can be easily increased  by a few billion if there is a duty-free quota-free facility, and  non-tariff barriers are addressed.
“The US administration may, if  felt imperative to do so, consider flexible ways and special vehicles to  offer GSP facility to Bangladesh in the changed circumstances,” he told  The Daily Star yesterday.
With Washington’s support, the  International Monetary Fund, the World Bank, and the Asian Development  Bank may favour allocating funds for Bangladesh. Such support will have  positive impacts on the overall economy because the funding will lead to  economic stabilisation, employment generation, and increased wages, he  said.
These in turn can embolden the interim government’s resolve  and capacity to secure improved governance, higher labour standards, and  better human rights. Such a positive spiral can also encourage greater  economic interaction and quality investments from other Western  countries.
“If the US companies can be encouraged to invest in the  IT sector of Bangladesh and the Bangladeshi IT experts in the US can be  connected to our IT industry, it can significantly increase  Bangladesh’s IT-related services export. The same can happen with other  cutting-edge technologies if the US shows keenness only with deeper  political understanding, trust, and confidence,” said Sufiur,  Bangladesh’s former permanent representative to the UN offices and  international organisations in Geneva.
Sufiur said over the last  years of the Awami League government, Bangladesh had to depend more on  China for its failure to bridge gaps with the US and the West, and there  is a real chance of striking a balance now.
DU teacher Obaidul said Washington can also provide budgetary support, which is much needed in Bangladesh.
He  said the export of Bangladeshi readymade garments saw a decline amid  recent demonstrations and subsequent unrest, and US support towards this  end will be extremely helpful.
Washington can also support Bangladesh’s reform process, including in financial and security sectors.
“If  Bangladesh improves in human rights, labour rights, and governance  sectors, and eventually the sanction against Rab is withdrawn, this will  have positive impacts on Bangladesh’s export to the Western countries,”  Obaidul added.
Analysts said Prof Yunus, who has earned US trust,  is expected to discuss these aspects and take forward the US-Bangladesh  relations to a new level.
Dhaka needs to ensure that it maintains a balanced foreign policy, they added.